(WMC-TV) - New York City is suing Memphis-based FedEx.
The shipping giant is accused of illegally delivering millions of contraband cigarettes to people's homes, which violates a 2006 settlement. The city is seeking $52 million in civil fines and unpaid taxes.
FedEx issued the following statement:
Through its contracts with customers, FedEx prohibits the shipment of tobacco direct to consumers and believes the claims made by the city are overstated and not founded in law.
We fully support New York City's efforts to stop the shipment of untaxed cigarettes. We have ceased doing business with shippers identified as violating this provision and notified the state of New York.
To protect the privacy of our customers, FedEx will not open packages to determine their contents without reason. Therefore, to best support the city's efforts, we intend to continue working closely with the city, state and all applicable regulatory agencies. We have and will continue to stop doing business with shippers identified as shipping prohibited tobacco products.
FedEx intends to defend this case while continuing to work with authorities to stop prohibited tobacco shipments.
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